The Name of the Monopolies and Restrictive Trade Practices (MRTP) commission strikes terror in the heart of the hardiest of capitalists. So Dilip Piramal, chairman of Blow Plast Ltd (turnover Rs 66 crore), was rattled to receive a letter from it informing him that his latest sales gambit was in jeopardy. The commission had upheld the complaint of Delhi advocate Madhu Singh that Blow Plast's 'VIP bag-a-bargain offer' was "grossly misleading".

Launched in January, the scheme claimed that the customer, by judicious use of the 20-page booklet of discount coupons, could save up to Rs 5,000 on various purchases. Singh said she went to buy a suitcase and discovered that the scheme promised more than it delivered. Among her grouses:

Dealers who usually offered a standard 22 per cent discount on bags now asked customers to choose between the booklet and the discount;

Blow Plast had raised its prices earlier this year, thus effectively negating the cost to them of the discounts;

The discounts were available at selected outlets only, so the money spent on travel to and fro ate into the offer.

The commission agreed with her and slapped a temporary exparte injunction on Blow Plast. Piramal countered that:

All luggage manufacturers, and not just VIP, had raised prices following excise levy increases;

There was no obligation on the customer to use the booklet;

Says Piramal: "It's not that when you buy our bag you have to spend Rs 50,000. You are free to take it or just leave it."

The inquiry continues, but the commission has allowed Blow Plast to go ahead with the scheme. But the advertisements have to change. Notably, the words, "Believe it or not, to save up to Rs 5,000 all you have to do is to buy a VIP now" are to be replaced by "Leading consumer products will be available at the stores specified on the rebate coupons as well as any other supplementary lists". It now remains to be seen whether Piramal's sales pitch will have the same force it did earlier.

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